When Social Security was initially created, it only paid retirement income to workers who were eligible. It was later revised to include benefits for spouses and survivors, which made it more of a family or insurance plan, instead of simply a retirement plan.
Sadly, it is inevitable that many husbands and wives will find themselves widowed around their retirement. This is not only a huge loss emotionally, but can be an immense loss financially as well, particularly since the survivor will lose the income earned by the spouse that has passed away.
The Social Security survivor benefit was created to ensure that the surviving spouse wouldn't lose all of their earnings when the first spouse dies. Actually, the survivor income is 100% of the spouse's income before he or she passed. Assuming that both spouses are at present receiving Social Security, if the spouse with the greater amount of Social Security passes away first, the spouse with the lower payment will get an increase in her income. However if the spouse with the lower payment passes first, the surviving spouse's income will not alter.
There are some policies in order to qualify for Social Security death benefits: The couple should have been married for no less than 9 months before the spouse's death, unless his death was a result of an accident. Also, divorced spouses may qualify for widow's benefits as long as they were married for more than 10 years.
Widows can request for survivor benefits beginning at age 60, or age 50 if they are disabled. Same as with retirement and spousal benefits, the widow may not want to start collecting at age 60 because the benefit will be lowered for every month received before attaining full retirement age. A widow can expect to receive anywhere from 71.5% to 100% of her deceased spouse's benefit based on how old she is when she starts receiving the survivor benefit.
It's essential to note that as a widow you will get the survivor benefit or your own benefit, whichever is more. So your benefit will go up if your spouse's benefit was more than your own, however you will still lose one benefit, so your total income from Social Security could be 1/3 to 1/2 lower than it was before your spouse died.
A technique to help optimize your total benefits considering your spouse passes before you reach full retirement age is to begin collecting widow's benefits as soon as your spouse passes (assuming you are at least age 60 or your are age 50 and disabled), then switch to your own benefit once you attain your full retirement age. This will permit your own retirement benefits to keep on earning credits and therefore will raise your retirement benefit. Or, if the survivor benefit is significantly higher than your own benefit, you could request your own benefit early, then move to the survivor benefit when you reach full retirement age.
You should apply for Social Security widow benefits right away after a family member has passed. To do so, you can contact the Social Security Administration or visit the office closest to you. It's important to know how Social Security survivor benefits operate so you can maximize your retirement income, especially after the loss of a loved one.
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